Powdered hydration drinks are drink mixes in powder form. Easily combined with water, they’re designed to help replenish fluids, electrolytes and nutrients.
Once more a niche category for sports and fitness enthusiasts, they’ve now made a big push in the mainstream.
Data analytics company Euromonitor tracks electrolyte powders alongside other powder mixes in a category called “Powder Concentrates” on its data and insights platform, Passport.
“The category grew volume in the US by 15% in 2024: a year where most other RTD categories of soft drinks struggled to generate meaningful volume growth,” notes Howard Telford, head of soft drinks at Euromonitor International.
So what’s driving growth? There’s a number of factors: the ease of transporting small packets (in stark contrast to bulky liquid drinks) along with the opportunity for customization.
They can also pack a powerful punch: with electrolytes, carbohydrates and vitamins.
“I think there’s an element of convenience as a driver in the growth of Liquid I. V. and similar brands,” said Telford. “These are gym-bag or purse friendly products for on-the-go consumption, such as post-workout, travel etc, and they also allow the user to control dosage.
“This is a lightweight format that scales well across different occasions.”
Category pioneer: Liquid I.V.
Liquid I.V. is the #1 powdered hydration brand in the US. It’s found in more than 80,000 retailers in the US and is expanding internationally. Launched as a start-up in 2012, it was acquired by Unilever in 2020.
For CEO Mike Keech, the brand’s success has been about making wellness and hydration simple.
“We were seeing that hydration (and wellness in general) had become too complicated or inaccessible for the everyday person, so we set out to position Liquid I.V. as a customer-centric brand that brings real hydration and real flavors to real people everywhere,” he told us.
For Liquid I.V., it’s been about four winning factors: function (a science-backed formula with electrolytes, essential vitamins and nutrients); flavor; culture (meeting consumers at ‘dehydration’ occasions such as festivals and live music events); and impact (it partners with non-profits to expand clean water access).
What’s next for powdered hydration drinks?
“The powdered hydration category will continue to grow as consumers become more proactive about wellness and performance,” says Kyle Watson, Chief Marketing Officer at Celsius, the booming better-for-you energy brand which launched Celsius Hydration, company’s first caffeine-free, functional beverage product, in the US earlier this year.
“Formulations will go beyond basic electrolytes, incorporating more functional ingredients, allowing hydration powders to evolve into multi-benefit wellness blends. Consumers crave bold, refreshing flavors and zero sugar formulations will continue to be a top priority.
“What was once seen as a performance or fitness tool is quickly becoming a mainstream wellness staple. We’ll continue to see adoption from audiences outside athletes and appealing to the everyday achiever who is seeking hydration support in their daily lives.”
And, as with any growing market, standing out from the crowd will become more important, says Watson.
“With more players entering the space, brand identity will be more important than ever. Consumers gravitate toward brands that not only provide functional benefits but also resonate emotionally.”
And it’s not just about looking at how the powdered hydration category is evolving. It’s also about how it could emerge as a serious competitor to other beverage categories.
For Telford of Euromonitor, powdered hydration drinks are now forcing traditional liquid sports drinks to up their game.
“In the US, powdered hydration drinks have put a lot of pressure on the mainstream RTD sports drink category, with Gatorade launching a new powder format hydration booster at Expo West this year,” he noted.